"It's good that David Davis is thinking about this issue, which is critical for both banks and the UK's ability to do business in the EU," Browne said.

Treasury Select Committee member Stephen Hammond added: "This is a recognition that this is a significant issue for the UK. We all want to make a success of Brexit, and that means getting a good deal for financial services."

Speaking in Birmingham, Davis also said that any good deal for Britain would boost sectors like the City and automakers.

"We want the car manufacturing industry to be doing better, we want the finance sector to be doing better, with no constraints on them," he said.

The Haltemprice and Howden MP also said that the CIty’s position as a global financial centre would not be hit by Brexit, noting that European cities have long sought to lure businesses out of London and onto the Continent.